Skip to content
March 28, 2023


Investment information for the new generation


Medexus Pharma (MDP.TO) announces new secured credit agreement

Specialty pharmaceuticals is a unique niche in the pharma sector. Where companies like Eli Lilly pour billions into developing a drug candidate from scratch with the very real possibility that the drug will fail during trials and never make it to market, specialty pharma companies, like Medexus Pharmaceuticals (MDP.T), find already approved drugs from other jurisdictions and bring them to the North America market. Drug development risk averted.

Medexus has methodically built a diverse drug portfolio in both the U.S. and Canada that generates a sustainable growing revenue. We have seen this with recent quarterly earnings which have continued to break company records. The latest fiscal Q3 2023 financial results turned out to be another record quarter for the company with revenue of US$28.7 million which accounted to a 35% increase over fiscal Q3 2022.


Today the company announced it has entered into a new senior secured credit agreement for a US$35 million term loan facility and a US$3.5 million revolving loan facility for working capital. The term loan facility benefits from an additional US$20 million uncommitted accordion feature, which Medexus is confident will be available. The facilities will mature in March 2026.

“As we look ahead to fiscal year 2024, we are pleased to announce this non-dilutive debt financing, which demonstrates our access to capital on competitive terms,” commented Marcel Konrad, Chief Financial Officer of Medexus. “Medexus has delivered sequential revenue growth and improving profitability over the past five fiscal quarters, and we are pleased that our new partners at BMO have recognized the strength and stability of our business.”

Medexus used the net proceeds of the new term loan facility to satisfy all obligations under Medexus’s existing senior secured credit facilities, which otherwise would have matured in July 2023.

Borrowings under the new term loan facility bear interest at a rate of adjusted term SOFR plus a margin determined quarterly based on Medexus’s consolidated leverage ratio. The interest rate will initially be 8.58%. This rate compares favorably to Medexus’s now-repaid term loan and asset-based revolving loan facilities, which had interest rates of 11.33% and 8.78% as of the repayment date.

TradingView Chart


The stock is currently up over 6% on the news at the time of writing.

The stock is now ranging at a major support zone after recent volatility which saw us breakdown below the $1.70 support. We are now back above and consolidating. Many see ranges as boring price action, but I find them exciting because a break gives us direction of the next major move.

The stock is also consolidating below the trendline I have drawn. It has more than 3 touches, which means this is a valid technical indicator. A breakout and candle close above this trendline would be a strong bullish trigger for the stock which would see us run back to the $2.50 resistance zone.



Related Posts

More on

Leave a Reply

Your email address will not be published. Required fields are marked *